Identify Which of the Following Statements Is False

question 80

Multiple Choice

Identify which of the following statements is false.

• A)Minority shareholders involved in a Sec. 332 subsidiary liquidation must recognize a gain or loss under the Sec. 331 general liquidation rules.
• B)The parent corporation takes a basis in property received when liquidating a subsidiary corporation in a Sec. 332 liquidation equal to its basis to the subsidiary corporation.
• C)Section 332 is applicable to both the parent corporation and the minority shareholders if they exist.
• D)Property received by a minority shareholder takes a basis equal to its fair market value.

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Definitions:

Defiant

Characterized by resistance and disobedience, often in opposition to authority.

Imitate

The action of copying or mimicking the behaviors, actions, or appearances of someone else.

Parents Do

The actions, behaviors, and decisions made by parents in raising their children, including nurturing, disciplining, and supporting their development.

Murders Witnessed

The experience of being a direct observer to the act of murder, which can have profound psychological effects on individuals.